jump to navigation

us banks provide liquidity support October 15, 2007

Posted by Bradley in : Uncategorized , trackback

In the US, and encouraged by the Treasury,banks have agreed to provide liquidity in the market for asset backed commercial paper:

Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), JPMorgan Chase & Co. (NYSE: JPM) and several other financial institutions have reached an agreement in principle to create a single master liquidity enhancement conduit (“M-LEC”). Once established, M-LEC will agree, for a set period of time, to purchase qualifying highly-rated assets from certain existing SIVs that choose, in their sole discretion, to take advantage of this new source of liquidity. Access to such liquidity is intended to allow participating sellers to meet pending redemptions and facilitate asset-backed commercial paper rollovers.


Sorry comments are closed for this entry